MEPs call for stronger digital tools and coordination to protect EU budget 

Members of the Budgetary Control Committee (CONT) have set out proposals to strengthen the protection of the EU’s financial interests in a draft report on the Commission’s annual report on combating fraud.

In 2024, the number of fraud cases reported by EU and national authorities exceeded 1,300, with the related financial amounts estimated at €548.8 million.

Greater use of digital tools

The CONT Committee MEPs call for wider use of artificial intelligence and advanced analytics to improve the detection and investigation of fraud affecting EU funds. They highlight that enhanced digitalisation of administrative and control systems could simplify checks, reduce bureaucracy for beneficiaries and improve the efficiency of EU spending oversight. However, digital tools must move from analytical reflection to operational deployment and ensure interoperability between national and EU databases, while respecting data protection and cybersecurity standards.

Tackling VAT fraud and organised crime

VAT fraud remains one of the most damaging crimes, often involving organised criminal networks operating across borders. MEPs call on the Commission to review the current €10 million threshold determining when the European Public Prosecutor’s Office (EPPO) can investigate VAT fraud cases.

They also stress the need for stronger data-sharing and operational cooperation between national tax authorities and EU investigative bodies.

The MEPs warn that criminal networks increasingly exploit artificial intelligence and digital tools to falsify documents, manipulate procurement procedures and commit identity theft in financial fraud schemes. To counter this threat, they call for a dedicated EU initiative to develop artificial intelligence-driven fraud-detection tools.

Faster recovery and more transparency

MEPs stress that effective recovery of misused funds is essential to deter fraud and safeguard the EU budget. They note that the main obstacles to recovery stem from lengthy administrative and judicial proceedings, restrictive conditions for recovering funds, and strict limitation periods.

They call for clearer indicators to measure recovery performance and for more detailed reporting on the amounts recommended for recovery and those actually recovered.

The committee also demands greater transparency in EU spending programmes, including more comprehensive publication of final beneficiaries of Recovery and Resilience Facility funding.

Quote

“This report on the protection of the Union's financial interests is a major step forward.

It establishes the principle that European citizens have a right to transparency (particularly regarding the final beneficiaries of funds) so that they know how every euro of the Union's budget is being used. Only such transparency can boost confidence in our institutions. It also sets specific objectives for the institutions to fulfil their duty to combat fraud, fix the shortcomings of the current control systems, and improve cooperation between national and European authorities. The fight against fraud and the protection of the EU's financial interests is not an option: it is a necessity in order to protect European taxpayers' money,” rapporteur Julien Sanchez (PfE, FR) said after the vote.

Next steps

Committee MEPs endorsed the resolution on Thursday by 15 votes to 12 and with one abstention. A plenary vote on the text is expected in April 2026.

Background

Each year, the European Commission publishes a report assessing the measures taken by the EU and Member States to combat fraud affecting the Union’s financial interests. The European Parliament uses this report, together with input from bodies such as the EPPO, OLAF and the European Court of Auditors, to evaluate progress and identify areas requiring further action in its own resolution.